MicroProse posts lower revenue, 4th straight quarterly loss

November 18, 1993|By Michael Dresser | Michael Dresser,Staff Writer

MicroProse Inc., the Hunt Valley designer and marketer of video game software, reported its fourth straight money-losing quarter yesterday as it posted a loss of $12.7 million and a 30 percent decline in revenues.

The loss, amounting to $1.91 per share, was MicroProse's deepest immersion in red ink to date, but a company spokesman said the loss was in line with expectations and would have no effect on its plans to merge next month with Spectrum HoloByte of Alameda, Calif.

The negative second-quarter results compared with earnings of $1.2 million, or 18 cents a share, in the same period a year ago. Sales for the quarter were $9.5 million, down from about $13.6 million in the year-ago quarter.

The loss for the second quarter includes $7.2 million in special charges as MicroProse moved to clean up its books in preparation for the merger. The largest write-off was $4.9 million for problems associated with its ill-fated acquisition of United Software GmbH in Germany.

Last month, MicroProse rescinded its March acquisition of the German company, citing what it called a failure to disclose matters pertaining to United's ability to carry out its obligations.

MicroProse also listed a charge of $1.3 million for expenses related primarily to its decision not to market several games that were under development. The company also wrote off $2 million in expenses related to its acquisition by Spectrum HoloByte, which bailed out MicroProse in June after an earlier merger fell through.

Gerard Blair, MicroProse's vice president of marketing, said the company expects the acquisition to be completed in December.

MicroProse has experienced steady reverses in recent years, largely as a result of bitter divisions within its top management ranks.

Last year, its losses began to mount after it failed to deliver some expected new products in time for the holiday shopping season.